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Forex Market

WHAT IS EXPERT ADVISOR OR FOREX ROBOT

Trading algorithm is a systematic set of instructions written in a computer language that informs what actions to be taken by a given trading platform. It takes a few seconds for a professional trader to make an expert decision, while for algorithm this time is only 0.0001 seconds.

It is not surprising that the majority of financial institutions trust them. Nowadays, 3/4 of the trading decisions are taken by machines, not by people. Their speed of data processing and decision-making gives them precedence over every human mind.

With Forex Robot you can trade without being influenced by greed, fear or even simple mistakes in your orders. Experience and knowledge do not matter to them. The software integrates sophisticated algorithms and management tools. Thanks to them, the robot continuously scans the market and decides when to execute appropriate orders.

Benefits:

  • - Without mistakes related to manual trading
  • - Round the clock trading
  • - No emotions
  • - No need to keep track of the market constantly
  • - No experience is needed

WHY MOST OF THE SYSTEMS FAIL

Trading is one of the most challenging professions in the world. In order to become a professional trader, it takes years infront of the charts, almost always the first ones being losing. Similar is the situation with programming, from here comes the difference between successful automated systems and losing ones. To make a winning system, you have to be a good trader and you need to know the markets. The majority of the creators are programmers but not traders. They are not familiar with the markets and the way they function. This is why they are wandering for years by relying on the principle of random markets – “the price always returns”, trying to eliminate the losses (they do not accept them) and in that they do not manage the risk, they are not familiar with the way Brokerage companies operate and instead of being in tune with their interests are trying to counteract.

Main types of losing automated trading systems:

Martingale is a principle that comes from casinos and aims to beat the roller wheel. Its essence is doubling the stake at a loss. There are thousands of automatic trading systems based on similar principles. They always trade against the movement of the chart and open position after position, usually increasing the volume. The idea here is that when you have trend correction, the "basket" of positions is rapidly gain profit, then the system closes all positions generating a net profit. It sounds great because you always have positions and they are constantly closing, generating small profits, taking advantage of the chaotic market. Sooner or later, these systems have a trend that leads thе account to margin call - once every 100 or 1000 times, the trend does not make correction, and the rising volume leads to quick bankruptcy.

This type of system, similar to the Martingale based, relies on random market theory. The robot opens a position in any direction and hopes to make a profit. If the position quickly becomes a loser, the system opens a larger position in the opposite direction, counts that it will win enough to cover the loss of the first one, which also remains open. Again and again, no losses are closed, only a "basket" is closed when it is at net profitable. With a strong trend everything is fine and profits are regular. However, when you take a long period of range movements, your account quickly devours the free margin.

The only purpose of this type of system is to take advantage of weak and/or incompetent brokerage firms who have insufficiency in their price quotes compared to the best in the industry. What the system does is track two quote sources making transactions based on information from the one with the fastest quotes. These systems work only with small capital and for a very short period of time. The brokers quickly find similar attempts for "manipulations", then the client is expelled, the profits are held in favor of the broker and in the cases when it is not a regulated broker, the client may forget about the initial deposit.

These are systems based on so-called scalping. This is a tactic in which the positions are held from a few seconds to a few minutes. Typical of these systems is that they give great results in backtests with very low and rare losses and colossal return. The problem with these types of systems is that they never work the same way exposed to real trading conditions. The live market conditions do not allow for fast execution, variable spread and adding slippage are also a very important factor due to the large share of the profit. The brokers do not like this type of system as they cause the so-called Toxic flow to the liquidity providers. Some investment firms are directly banning clients that are using such strategies, others simply worsen the trading performance until the client either leave or simply lose all the money.

HOW AI CAPITAL’S SYSTEMS OUTPERFORM THE REST

Our system trades as a professional trader:

  • - The System is based on pure Price Action – no Indicators, no Martingale, no Grid, no Scalping… Just trend following.
  • - The profit/loss ratio of each trade is always positive – the potential profit of each trade is always greater than the potential loss. This means that even if you have more losers than winning deals, the end result will be positive.
  • - It relies on real market dependencies rather than random market theory – opens a position only when there is a pre-defined set of conditions. This means that there may be days, even weeks, without a single deal if the necessary conditions are not present.
  • - We use stop and target with every open trade – you can not get into a situation where you have positions out of control. The stop and the target are set directly with the order to open the position, the eventual loss is always calculated. Due to this, long-term losing positions are not “dragged”, which are a prerequisite for bankruptcy.
  • - Integrated Money Management – our system has an algorithm for controlling the volume traded. The calculations are made in milliseconds, based on the current account balance and the preset risk parameter.
  • - Risk Parameter – this is a parameter that in combination with the money management provides the most effective account management. A higher risk parameter means higher drawdown and tolerance to loss and significantly higher profits as a result. Thanks to this setting, you can be a aggressive speculator or a conservative investor.

The system has built-in protection against a number of unfair tactics used by incorrect Brokerage companies:

  • - Slippage filter – If the slippage exceeds the set value, the robot will not open any deals until the conditions for trading are normalized.
  • - Spread filter – If the spread exceeds the set value, the robot will not open until the trading conditions are normalized. This protection can save you not only by your broker, who may try to worsen your trading conditions and performance, but also in the case of a “black swan” event. In the event of such events floating spreads may increase hundreds or even thousands of times. There have been many such cases in recent years, for example, the abolition of the Swiss franc threshold by SNB and Brexit referendum.
  • - Equity Drawdown Percentage Protection – If the day’s percentage drawdowns exceeds the set value, the robot will close all open deals and will not open new ones until the next day. Our system is suited for high volatility, but we know that there is some unpredictability in the markets and we want to be prepared and able to continue trading tomorrow even in the worst case scenario.
  • - Equity/Balance Percentage Protection – If the account Equity/Balance fall below pre determined value, the Expert Adviser will close all opened deals and will not open new ones until the Account balance is changed or the value is adjusted accordingly.

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